Here is our latest Denver Real Estate Market Update with Year-End Totals.
The Market continues with one general theme: Demand is stronger than Supply! Inventory continues to be our biggest issue, as good homes are getting gobbled up by Buyers very quickly!
The Seller market got very sleepy in the 4th Quarter of 2013. Sellers almost disappeared from listing their homes in the last 3 months of 2013! That means we are due for a resurgent Seller market, and when that happens activity should increase dramatically.
By the numbers, the inventory of available homes for sale is 7,275 homes at December month end; 2,379 homes came onto the market, 2,807 homes were placed under contract, and 3,229 homes closed for a closed dollar volume of $1.0 Billion. The year that ended December 31, 2013 was a year of records, continuous buyer demand, market frenzy, and upward prices.
Monthly Market Recap:
Residential (Single Family plus Condo):
Active Inventory is 7,275 homes at month end
Sold homes is 3,229
Average Days on Market is 57
Average Sold Price is $310,643
December Year-to-Date Market Recap (2013 versus 2012):
Residential (Single Family plus Condo):
Active Inventory 7,275 versus 7,706 (↓6%)
Sold Units 54,024 versus 46,299 (↑17%)
Average Price $306,910 versus $279,601 (↑10%)
Sales Volume $16.6B versus $12.9B (↑28%)
- Interest rates continued to gradually increase upwards in the month of December.
- Consumer confidence increased in December to 78.1 up from 72.0 in November.
- Overall, the Denver home market continues to have a two month supply of homes available for sale at the current sales rate.
- Records have been set in 2013 in the Denver Home Market.
Remember, real estate is local. While the above is a representation of the Denver market as a whole, please contact me to better understand your specific real estate market.
Advice to Sellers:
Welcome to 2014. Last year ended with 54,024 homes sold/closed, a closed dollar volume of $16.6 Billion, and an average price appreciation of 10%. Last year was a record year in several categories.
This year starts with low inventory of unsold homes, continuing strong buyer demand, low rental vacancy, new home builders building at a rapid rate, and an overall consumer thirst for home ownership. External influences will continue to impact the home market; such as employment, economy, and consumer confidence. Many economic forecasts believe that 2014 will be a better year than 2013.
An overview of the 2014 forecast is that employment will increase, mortgage interest rates will increase, home pricing will increase slightly, and consumer confidence will increase slightly.
Are you prepared as a seller for all prospective buyers? Here are five (5) things to do before putting your home on the market for sale:
- obtain a pre-sale inspection,
- organize and clean everything,
- obtain replacement estimates,
- find warranty documentation,
- spruce up your home’s curb appeal.
Last but not least, find that one thing that will provide your home’s WOW factor to prospective home buyers.
Each and every home is unique which suggests professional assistance in selling the home. Remember Real Estate is local. Contact me to discuss the options available to you in 2014.
Advice to Buyers:
In looking at 2014 from an economist’s perspective, the overall forecast is positive. Employment will increase, interest rates will increase, home affordability will decrease slightly, home buyer demand will continue, home pricing will increase slightly, and consumer confidence is expected to increase. Prioritize your needs and wants and focus on the available homes.
Know what you want in a home, where you want to live, and what price range you can afford. Complete the pre-qualification process with a lender so you know the price range that you qualify for. Be prepared and manage your expectations.
Call me today about your Lifestyle preferences, the benefits of home ownership, homes available for sale, buying a home in 2014, and home affordability.
Until next time,
The Bandy Team
RE/MAX Professionals - Denver, CO
"From Our Heart to Your Home"